B772 - that number is only current liabilities, total liabilities are 2,412,000,000 against 925,000,000 net assets/equity (or 3,337,000,000 total assets) asset value per share .84c, cash or equivilents available $600,000,000 refer the 2007/08 full year results released by virgin.
QF is just as bad though once non-current liabilities are taken into account. 13,102,000,000 total liability against 6,081,000,000 net assets (or 19,183,000,000 total assets) asset value per share $2.95, cash or equivilents $2,900,000,000.
compare this to rex, 51,730,000 total liabilities (18,000,000 of which is just unused tickets etc... and almost all of which is current liabilities only 5,000,000 in non-current) with 112,653,000 net assets (164,000,000 total assets)
High levels of debt are only a problem if the buisness starts experiencing cash flow problems over an extended period and debt repayment/service provision starts to look doubtful. This is where available cash reserves become more important, as with diversity and having a solid backer capable of cash injection.
Last edited by 43Inches; 24th Sep 2008 at 23:51.